The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.
<h3>What are
systematic risk principles?</h3>
According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.
Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.
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The answer to the question is false
Answer:
A) A relatively large budget deficit as a percentage of GDP beyond the European Union's deficit and debt rules.
Explanation:
A budget deficit is when the governments have more expenditures in a budgeted year than they have the revenues in form of taxes and other incomes. A deficit is excessive if it is large in comparison to the GDP.
In the European Union the budget deficit is considered excessive if it exceeds 3% of the running years GDP.
A public debt percentage to GDP of 60% or above is considered excessive as most of the GDP then is used for debt servicing and thus impacts negatively on the financial health of the country.
Hope that helps.
The relationship between the straight-line and double-declining-balance method is that they D. Produce the same total depreciation over an asset's useful life.
<h3>How are the straight-line and double-declining-balance methods related?</h3>
While they do not produce the same depreciation every year, they will eventually depreciate an asset in the same way overtime.
What this means is that both methods will depreciate an asset by the same amount at the end of the asset's life. However, the depreciation amounts will vary by method on an annual basis.
In conclusion, option D is correct.
Find out more on depreciation methods at brainly.com/question/26948130.
